Guidelines on certification in certifying documents as a suitable certifier under paragraph 6. This manual sets out the hkmas latest supervisory policies and practices, the minimum. B9111c legislative council brief banking ordinance cap. In brief, our proposals for mandatory reporting are as follows.
The groups banking disclosure statement at 30 september 2019 comprises information required under the framework of the basel committee on banking supervision bcbs. The hong kong monetary authority is informing authorized institutions that on feb. Hong kong hong kongs proposed new payments regulatory regime. Near apple, lemon, 2, false means to find documents having apple within 2 words apart from lemon. Hkma under the protection of section 61 is set out in part iii.
If a bank is incorporated in hong kong, the hkma will act as lead regulator for the. Hkma implements measures to key issues refine management. To print the whole chapter, please click at the bottom of the toc panel and then click. Hong kong monetary authority supervisory policy manual. If reading online, click on underlined headings to activate hyperlinks to the relevant module. Manual ic3 reporting requirements relating to authorized institutions external. In practice, the ma heads an office known as the hong kong monetary authority of. Banking ordinance representation on eligible deposits by authorized institutions a guideline issued by the monetary authority under section 73 1. Financial institutions that are regulated by both the securities and futures commission sfc and hong kong monetary authority hkma also need to be aware of the mismatch in the secrecy obligations applicable to each of these regulators and what their respective expectations are. Pn830 reports by auditors under the banking ordinance. The special purpose vehicle spv establishing the spv 4.
Hong kong banking ordinance as amended arrangement of sections part i preliminary 1. Hkma reboots virtual banking hogan lovells jdsupra. Under the banking ordinance, the hkma is the authority responsible for the authorisation, suspension and revocation of all three types of ais. Gazettal of revised capital rules under banking ordinance. Hkma reboots virtual banking february 2018 3 constraints on the virtual business model.
The hkma has the authority under the banking ordinance to grant or. It is a government authority founded on 1 april 1993 when the office of the exchange fund and the office of the commissioner of banking merged. This is a guideline issued under section 73 of the banking ordinance cap. The code is issued under section 97m of the banking ordinance to provide technical guidance to the interpretation of the banking exposure limits rules chapter 155s belr, in particular the. To print individual selected provisions, please first tick the provisions to be printed from the toc panel and then click. Hkma revised capital and liquidity rules under banking ordinance. Ten things you need to know about dealing with death is a quick and easy description of ten simple rules that guide you through the grieving process, in the immediate aftermath of a death, in a practical and sometimes humorous way. The monetary authority, pursuant to section 97m1 of the banking ordinance chapter 155, approves and issues a code of practice after. The powers under the banking ordinance are personally vested in the ma.
Banking disclosure statement 30 september 2019 unaudited. The ma welcomes the establishment of virtual banks in hong kong. The hkma plays an active role in the development of financial infrastructure in hong kong with a view to maintaining hong kong as an international financial centre and developing hong kong into a settlement hub in the asian region. The groups annual report and the banking disclosure statement, taken together, comply with the banking disclosure rules bdr made under section 60a of the banking ordinance. Mr chan joined the hong kong government as an administrative officer in 1976 and became deputy director monetary management of the office of the exchange fund in 1991. Hkma selling of investment products to private banking customers.
Contraventions of the banking ordinance hong kong monetary. Guideline on exercising disciplinary power to order a pecuniary penalty under section 203c1 of the securities and futures ordinance in respect of the otc derivatives regime pdf file, 129. To regulate banking business and the business of taking deposits. The hkma also, together with the government and the securities and futures commission sfc, built a regulatory regime for the otc derivatives markets otc regulatory regime under the securities and futures ordinance sfo, including requirements for mandatory reporting to the tr of the hkma hktr and mandatory clearing at designated ccps. Circular issued by the insurance authority ia on phase 2 of the temporary facilitative measures tfm to tackle the outbreak of covid19 pdf file, 84. Banking policy department hong kong monetary authority. The financial market legislation governing banks derives from one federal act, four federal council ordinances and one finma ordinance. Legal basis for banks eidgenossische finanzmarktaufsicht finma. The auditor is normally appointed by the ai with the approval of the hkma for the purpose of. However, as stated in the hkma virtual banking guideline, virtual banks operating in hong kong will be subjected to the. Authority hkma their audited annual accounts and other documents as specified under section 60 of the banking ordinance specified documents. Please set the page orientation to landscape for printing of bilingual texts on a single page. Apple is good means to find documents having the exact phrase apple is good. General consent granted by the monetary authority under section 97 1 of the banking ordinance pdf file, 44.
In its supervisory policy manual ic3 reporting requirements relating to authorized institutions external auditors under the banking ordinance, the hkma also provides a description of the nature of some of. Reports by the auditor under the banking ordinance hkicpa. The guide provides guidance to institutions seeking authorization under the banking ordinance about the scheme of supervision contained in the ordinance and the policies and approach of the hong kong monetary authority in implementing it. Payment systems in hong kong carnegie mellon university. Mr norman t l chan gbs jp, chief executive, hong kong monetary authority norman chan was appointed chief executive of the hong kong monetary authority on 1 october 2009.
Requirements under section 60 of the banking ordinance cap. Hkma expects all institutions to comply with the code and will monitor compliance as part of its regular supervision. Similarly, rpss are not regulated but a voluntary code of practice for payment card scheme operations, which sets out general principles to promote safety and efficiency of payment card operations, was adopted by eight card operators in 2007 and endorsed by the hkma. The proposals in this consultation paper have been developed jointly by the sfc and the hkma, and with input from the industry. The hkmas response to item 4 of the list of followup. Hong kong canada global law firm norton rose fulbright. Guideline on antimoney laundering and counterfinancing of terrorism for authorized institutions revised october 2018same as spm module aml2 pdf file, 768. The initiative by hkma to launch a new banking ordinance to permit virtual banking in hong kong is a result of the need to disrupt the current retail banking industry. Licensed corporations lcs, recognised clearing houses rchs and automated trading services central counterparty atsccp licensed and regulated by the sfc under the sfo are required to report specified otc derivatives transactions done or conducted by them to the hktr. To print the whole chapter in html, please click at the bottom of the toc panel and then click. The table of contents of the manual below should be read in conjunction with the introduction pdf file, 95kb and with the glossary pdf file, 225kb, which contains an explanation of abbreviations and other terms used in this manual. Appendix 5 the banking ordinance important provisions for the auditor. Banking disclosure statement 31 december 2018 unaudited. The hkma also, together with the government and the securities and futures commission sfc, built.
Hkma on timeline to lodge documents specified under banking. Please set the page orientation to landscape for printing the bilingual texts on a single page. Consultation paper on the securities and futures otc. These banking disclosures are governed by the groups disclosure policy, which has been approved by the board. Appendix a a draft of the proposed securities and futures otc derivative transactions reporting and record keeping rules draft rules. Hong kong banking ordinance arrangement of sections part i. Guide to authorization sets out the monetary authoritys interpretation of the authorization criteria and the grounds for revocation contained in the banking ordinance and the procedures for processing applications for authorization. Firms need to be more aware of hong kong secrecy obligations.
If you want to match the order of words, specify near apple, lemon, 2, true a percent sign % can be used to match zero or more characters. Payment, clearing and settlement systems in hong kong sar. Reports by the auditor under the banking ordinance 5 pn 830 december 2011 part ii auditors reporting responsibilities under the ordinance introduction 11. In addition, in accordance with section 60a of the banking ordinance, the ma issued a draft of the relevant provisions to consult the financial secretary, the banking advisory committee, the deposittaking companies advisory committee, the hong kong.
Monetary authority supervisory policy manual module ic1 risk management. Ajay shamdasani, regulatory intelligence financial institutions need to be more aware of hong kongs stringent secrecy obligations, said industry officials, who warned there was a mismatch in the obligations applicable to the territorys various regulators and their own expectations. It deals with operating licences and specifies rules for business conduct. Application part ii appointments, functions of monetary authority, reports by monetary authority and power of governor to give directions 4. Hong kong monetary authority development of fintech and. Want to know more on gazettal of revised capital rules under banking ordinance issued by the hong kong sar government. Checks and balances are provided in the banking ordinance with the requirement that the hkma consult the financial secretary on important authorisation. The banking act governs banks, private bankers and savings banks. Virtual banks will be required to maintain a physical presence and a principal place of business in hong kong. Code of banking practice hong kong association of banks. Under the new regulatory regime, authorized institutions ais and approved money brokers ambs licensed and regulated by the hkma under the banking ordinance. The banking capital amendment rules 2017, the banking liquidity amendment rules 2017, and the banking specification of multilateral development bank amendment notice 2017 were published in the gazette to implement certain recent international standards on banking regulation in hong kong.
Bdar 2014 legco brief eng hkma doj comments 20141223. Guideline on exercising power to order a pecuniary penalty under section 541e of the payment systems and stored value facilities ordinance pdf file, 1. Banks first issued by the ma under section 1610 of the ordinance on 5 may 2000. Hong kong monetary authority guide to authorization.
Banking ordinance as amended by the banking amendment ordinance 2005. Overview of the hkma authorisation regime institutions which intend to carry on banking business or the business of taking deposits in hong kong are required to be authorised by the hkma as authorised institutions under section 161 of the hong kong banking ordinance. Hkma notified that the banking amendment ordinance 2018 bao 2018 has been published in the gazette and was passed by the legislative council on january 24, 2018. The main purpose of the bao 2018 is to amend the banking ordinance bo to bring the countrys regulatory regime uptodate with the latest international standards on large. The guidance alsohighlights that for other functions, such as compliance, risk management and internal audit, they are of no less importance than the front. The disclosures are made in accordance with the latest bdr and lac rules issued by the hong kong monetary authority hkma. Banking ordinance authorization of virtual banks a guideline. The guide provides guidance to institutions seeking. Hkma implements measures to refine management accountability third party for example, with respect to an outsourced function would not be eligible. The hong kong management association is a nonprofitmaking organization which aims to be the leading professional organization advancing management excellence in hong. Hkab and dtca expect their respective members to comply with the code. The ma has engaged the banking industry in formulating the bdar 2014.
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